Introduction and Key Metrics

 

We seek to minimise our cost of capital through the appropriate mix of equity and debt finance, and ensure that we have access to sufficient financial resources to successfully implement our business plans.

As a property company, we believe that we should deliver returns that are enhanced - and not driven - by our financial leverage. Historically, we have maintained low gearing relative to the property sector. This helps provide downside protection when operating in the cyclical central London property markets, as well as maintain the financial flexibility to allow us to act quickly on new investment opportunities as they arise. Our sources of debt funding are diverse, both secured and unsecured, and include the public, private and bank markets. We maintain an attractive debt maturity ladder that fits our business.

 

March 2016

March 2017*

Net debt excluding JVs (£m)

 567.9

309.9

Net gearing

19.5%

11.6%

Total net debt including 50% JV non-recourse debt (£m)

644.0 

383.8

Loan-to-property value

17.4% 

12.2%

Total net gearing

22.2% 

14.4%

Interest cover

12.5x 

n/a

Weighted average interest rate

3.7% 

2.7%

% of debt fixed/hedged

100% 

100%

Cash and undrawn facilities (£m)

472 

618

*Pro forma for US Private Placement refinancing, deferred proceeds from the sale of 73/89 Oxford Street and Rathbone Square (commercial) and special dividend

Sources of debt funding

Debt maturity profile

LTV and cost of debt